Bombay HC concludes hearing in Vodafone tax case

Bombay HC concludes hearing in Vodafone tax case

New Delhi: The Bombay high court on Wednesday concluded its hearing in Vodafone’s appeal against the tax department CBDT, but reserved a judgment, a Vodafone representative said.

The court, which began hearing the case on 4 August, has not set a date for its judgment.

Vodafone has not said how much the authorities were seeking, but a person with knowledge of the matter has said it was about Rs12,000 crore ($2.6 billion).

Vodafone, fighting a tax bill in India from its 2007 purchase of Hutchison Whampoa Ltd’s mobile business in the country, had filed an appeal with the court in June challenging the tax department’s jurisdiction over the tax bill.

Tax authorities have said Vodafone’s deal was liable for tax because most of the assets were based in India and under Indian law, buyers have to withhold capital gains tax liabilities and pay them to the government.

But Vodafone has said Indian law did not require it to deduct tax, and that capital gains taxes are usually paid by the seller.